Cable TV

Siticable’s revival hinges on HITS

Published

21 years ago

October 25, 2004

For over a year, Essel Group additional vice chairman and head of Siticable Network Ltd. Jawahar Goel has been busy lobbying hard for a mandated form of conditional access system (CAS).

Getting in the digital Headend-in-the-Sky (HITS) model to distribute pay TV signals in a CAS environment is central to Siticable‘s revival strategy. This will enable the multi system operator (MSO) to avoid investment in upgrading its over 68 head-ends spread across 38 cities in the country. Also, and more importantly, it will provide control over its network which operates through joint venture partners.

“Unlike InCablenet and Hathway Cable & Datacom, Siticable runs its operations through joint venture partners. While Siticable owns the head-end assets, the JV partners are responsible for providing services to the local cable operators. It is the JV partner that has distributor agreements with LCOs. The HITS service will give Siticable more control which it badly needs,” says a media analyst.

Siticable may have a hybrid model in plan – a local analogue system, a digital cable TV service and HITS. But, as Goel says, “My best model is HITS.”

Unlike the other big MSOs, Siticable is not looking at driving new areas of business unless the regulatory picture becomes clearer. The network will not roll out its digital cable TV service now but wait for the government‘s recommendations. Nor is it pushing for Internet over cable. “We have to wait to know how the government wants us to do business. We also realise telecom companies are entering into broadband business. We are evaluating whether there is room for multiplying infrastructure,” says Goel.

There are other issues that are drawing Goel‘s attention. In Hyderabad and Bangalore, Siticable has over the years lost a sizeable chunk of its business to rival MSOs. Regaining ground is the challenge Goel faces today.

“In Hyderabad, we have a revival plan,” he says. Goel, however, is unwilling to disclose his game plan. But he admits he will appoint new cable operators.

Goel blames the pay-TV broadcasters for creating the rot in Hyderabad. Star India and Sony Entertainment Television (SET) India, he says, have worked out a minimum guarantee (MG) model with Hathway Cable & Datacom. This, he feels, has allowed them to muscle their way for growth from subscription.

In Bangalore, Star and Sony have a similar arrangement with InCablenet. “Broadcasters are giving MGs to various cable operators who have money and muscle. This is not smoothening the distribution business,” he says.

It is in Bangalore that Goel faced his worst problems this year. The pay channel bouquets of Star and Sony-Discovery were out of the Siticable Network for several months. The reason: Siticable had not cleared its dues. Finally, a settlement was arrived at.

Goel is no novice in this game. “When cable operators are leaving you and broadcasters are still demanding more money in an operation where you can‘t survive, the best strategy is to remain shut. Crash your cable TV price to subscribers. Broadcasters will listen to you and your rivals will have to unite,” says Goel.

That can spoil the market and make everybody bleed. But Goel calls it a cleansing process. “In the distribution business, might is right. The industry is a push-and-pull market. There are no ground rules. Nothing is permanent in this industry,” he says.

That is true for Siticable as much as it is for the other MSOs. In Chennai, for instance, Siticable‘s headend was stalled due to political reasons. Then Sun Network‘s Sumangli Cable Vision forced its way in. Goel did not want to speak on such developments.

Not too long ago, Siticable was ruling the country and was considered to be a “very lucrative asset” for parent company Zee Telefilms Ltd (ZTL). Since then, it has slipped even in the MSO-market of Mumbai. Substantial investments have not been made.

But for the last three years, Siticable has somehow held ground. Today, it has presence in pockets of Mumbai like Matunga, Mulund, and Ghatkopar. And in Delhi, the plan for a centralised control room is to get more power over the joint venture partners.

Goel‘s focus is to hold on to Siticable‘s existing territory, make the operations viable and grow vertically. “There is no point in having horizontal growth till CAS happens. Adding more operators is not fun.”

Digitalisation, Goel feels, is bound to happen in the next four years. And distribution margins will evolve across the three value chains – MSOs, broadcasters, and last mile operators – even without CAS.

A few years ago HSBC had valued Siticable at $1.9 billion. In the present circumstances, MSOs can no longer command that kind of valuations. Says Goel, “Without regulations, there can be no valuation. But once that happens, as the oldest and biggest MSO we will command the highest value.”

Related Topics:analogue Broadcasting cable TV CAS Digital HITS Jawahar Goel MoS MSOs Siticable

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Den Networks Q3 profit steady despite revenue pressure

Published

1 month ago

January 19, 2026

indiantelevision.com Team

MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.

Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.

Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.

The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.

In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.

Cable TV

Plugging along as Hathway tunes in steady profits this quarter

Published

1 month ago

January 17, 2026

indiantelevision.com Team

MUMBAI: In a quarter where staying connected mattered more than moving fast, Hathway Cable and Datacom kept its signal steady. The cable and broadband major reported a net profit of Rs 21.7 crore for the December 2025 quarter, marking a clear improvement from Rs 13.6 crore a year earlier, even as pressures persisted in parts of its operating portfolio.

For the quarter ended December 31, 2025, revenue from operations stood largely flat at Rs 536.6 crore, compared with Rs 511.2 crore in the same period last year. Including other income of Rs 21.1 crore, total income rose to Rs 557.7 crore, reflecting incremental gains despite a competitive media and connectivity landscape.

Profitability improved on the back of disciplined cost control and higher contribution from associates. Profit before tax increased to Rs 28.2 crore, up from Rs 19.1 crore in Q3 FY25, aided by Rs 3.9 crore in share of profit from associates and joint ventures. After tax, earnings for the quarter climbed nearly 60 per cent year-on-year.

Over the nine months ended December 31, 2025, Hathway reported a net profit of Rs 71 crore, compared with Rs 57.7 crore in the corresponding period last year. Total income for the nine months came in at Rs 1,677.3 crore, up from Rs 1,599.8 crore, while profit before tax rose to Rs 94.7 crore from Rs 84.2 crore.

A closer look at the segments shows a familiar split story. The cable television business remained under pressure, reporting a segment loss of Rs 11.4 crore for the quarter, though this narrowed sharply from the Rs 16.6 crore loss seen a year ago. In contrast, the broadband business returned to the black, delivering a modest but positive contribution of Rs 4.2 crore, helped by associate income. Dealing in securities continued to be a bright spot, generating Rs 14.7 crore in quarterly profits.

Costs stayed broadly contained. Pay channel costs, the single largest expense, rose to Rs 287.4 crore, while depreciation and amortisation stood at Rs 74 crore. Finance costs remained negligible at Rs 0.2 crore, keeping leverage risks in check.

Hathway’s earnings per share for the quarter improved to Rs 0.12, up from Rs 0.08 a year ago. The company maintained a strong balance sheet, with total assets of Rs 5,302.4 crore and total liabilities of Rs 848.9 crore as of December 31, 2025.

While structural challenges persist in the traditional cable business, the numbers suggest Hathway is slowly recalibrating its mix trimming losses where needed, leaning on associate income, and keeping the broadband engine ticking. For now, the company may not be racing ahead, but it is clearly staying tuned in to profitability.

Cable TV

Signal drop Tejas Networks’ numbers stay patchy in a volatile quarter

Published

2 months ago

January 10, 2026

indiantelevision.com Team

MUMBAI: In telecom, even the strongest signals face interference and Tejas Networks Limited’s latest numbers show just how noisy the airwaves remain. The Tata Group-backed networking firm reported unaudited standalone revenue of Rs 305.72 crore for the quarter ended December 31, 2025, up sequentially from Rs 261.37 crore in the September quarter, but sharply lower compared with the Rs 2,642.05 crore clocked in the year-ago period. The topline recovery, however, was overshadowed by a pre-tax loss of Rs 303.20 crore, widening from a Rs 473.03 crore loss in the previous quarter, and reversing a Rs 211.06 crore profit reported in the December 2024 quarter.

After tax, the company posted a loss of Rs 196.89 crore for Q3 FY26, compared with a loss of Rs 307.17 crore in Q2 FY26 and a profit of Rs 165.42 crore a year earlier. For the nine months ended December 31, 2025, Tejas Networks reported revenue of Rs 769.02 crore and a loss after tax of Rs 697.97 crore, a sharp swing from a Rs 512.67 crore profit in the corresponding nine-month period last year. The numbers reflect a year marked by execution challenges rather than demand collapse.

Costs remained the dominant spoiler. Total expenses for the December quarter stood at Rs 616.50 crore, driven by elevated material costs, employee expenses and provisioning. The company also flagged several one-offs and adjustments: a Rs 9.85 crore provision linked to the implementation of new labour codes, ₹24.35 crore in warranty provisions, and reversals related to inventory obsolescence. Earlier quarters had already absorbed heavy charges tied to contract manufacturing losses, design changes and write-downs, the hangover from which continues to weigh on profitability.

Tejas reiterated that it operates as a single reportable segment focused on telecom and data networking products and services, offering little insulation from sector-wide volatility. While revenue momentum has stabilised sequentially, the contrast with the previous financial year remains stark. For context, the company closed FY25 with audited standalone revenue of Rs 8,915.73 crore and a profit after tax of Rs 450.66 crore, underscoring how sharply the operating environment has shifted in FY26.

The results were reviewed by the audit committee and approved by the board on January 9, 2026, but they leave investors with a familiar question: when does recovery turn structural rather than episodic? For now, Tejas Networks appears to be in reset mode, balancing execution clean-up with cost discipline. In a sector where margins can be as fragile as fibre strands, the next few quarters will matter as much as the signals the company sends to the market.